Saturday, October 31, 2015

REI CEO Says Closing On Black Friday Is A 'Radical Idea'

REI will be sacrificing one of its top business days when it closes its 143 retail stores on Black Friday to encourage customers to spend time outside.

CEO Jerry Stritzke told HuffPost Live on Wednesday that the decision to close up shop for the day wasn't "made lightly," and admits that "it's a bit of a startling idea from a retail perspective."

"[We] certainly had to think hard about it. This is new news. I haven't spoken to very many of my contemporaries about the issue, but I'm excited by the idea," Stritzke said. "I think it's intriguing that we can create this conversation [about] something so central to our brand and kind of who we are."

This is the first time REI will close on Black Friday, even though the day after Thanksgiving has historically been a "top 10 business day" for the company, according to Stritzke. However, the company's decision exemplifies some retailers' recent opposition to keeping stores open on what is traditionally a family holiday, and the day after.

Online shoppers will still be able to purchase items from REI on Black Friday, though they'll initially be directed to a blackout screen imploring them to explore the outdoors. Online sales aren't the initiative's priority, however.

"It's easier to leave [the website] on than turning it off," Stritzke explained.

Watch Jerry Stritzke's conversation with HuffPost Live in the clip above.

Want more HuffPost Live? Stream us anytime on Go90, Verizon's mobile social entertainment network, and listen to our best interviews on iTunes.

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Thursday, October 29, 2015

Amazon Prime Now Drivers Claim They Were Paid Below Minimum Wage

Well, that didn't take long.

It was just a few weeks ago that Amazon launched its Amazon Prime Now service in Los Angeles and several other metropolitan areas, promising customers one- and two-hour delivery for tens of thousands of products.

On Tuesday, four former Amazon Prime Now drivers in Southern California sued the online retail behemoth, claiming the labor model behind the service is a sham. The drivers had made deliveries for roughly a month before they filed their complaint, which alleges violations of minimum wage and overtime pay laws.

The lawsuit provides yet another glimpse at how Amazon keeps its prices low in part by shaving labor costs deep down in its logistics network.

The drivers named in the complaint were not actually Amazon employees. Rather, they were "independent contractors" working on behalf of a courier service called Scoobeez, which the lawsuit indicates has a contract with Amazon. Since the drivers don't work for Amazon, the retailer doesn't have to worry about paying payroll taxes, workers' compensation costs or unemployment insurance taxes on them.

And since the workers are independent contractors, Scoobeez doesn't bear those costs, either. The drivers must cover their own work-related expenses, including providing their own vehicles and gasoline. Therein lies the claim that the Amazon-Scoobeez arrangement runs afoul of labor law: After paying their own automobile expenses, the drivers say their wages fell below California's minimum wage of $9 per hour. They also claim they were not paid the required time-and-a-half rate when they worked more than eight hours a day.

The suit argues that the drivers are, in fact, employees of Scoobeez, not independent contractors, as they've been classified.

The drivers were working for hourly pay, as opposed to the per-delivery rate that's common in the courier industry, according to the suit. Beth Ross, the attorney who filed the case, says the drivers typically logged at least 50 miles per day on their cars, often reaching or exceeding 100 miles. After subtracting the cost of gasoline and wear and tear on the automobiles from the $11-per-hour wage, Ross says the pay came out to roughly $60 for 8.5 hours of work on some shifts, or approximately $7 per hour.

"They are being paid a sub-minimum wage, and Amazon knew that," Ross told The Huffington Post. "And they're giving away the service for free to customers. Well, guess who's paying for it? Down-and-out, down-on-their-luck low-wage workers with no other job opportunities."

(Note: The Amazon Prime Now service is free for Prime members requesting a two-hour delivery; it costs $7.99 per order for one-hour delivery, with a $15 minimum order. The Prime service itself costs $99 per year.)

An Amazon spokeswoman said the company does not comment on pending litigation. A message left for Scoobeez, which was named as a co-defendant in the suit, was not immediately returned.

The independent contractor scheme is a cost-saving arrangement that already facilitates many Amazon Prime deliveries, as HuffPost detailed last year in a story about the Amazon contractor Lasership. Many of that company's drivers said they earned so little after expenses that a car breakdown would put them out of business.

The use of independent contractors is fast becoming the norm in trucking and delivery services nationwide, since it saves companies so much money. FedEx is widely credited with pioneering the independent contractor model, and the delivery giant has been fending off related lawsuits from drivers for years. Ross successfully sued FedEx on behalf of drivers in a closely watched case that was settled earlier this year for $228 million.

In addition to the minimum wage and overtime claims, the Amazon Prime Now lawsuit also accuses the company of breach of contract. The Amazon Prime Now app allows customers to leave a tip for their courier, but Ross alleges that the four drivers did not receive all their tips.

"This is brand-new ground for Amazon," Ross said of the Prime Now service. "They have the opportunity to make it right before this becomes a very entrenched business practice. They can set themselves apart from the rest of so-called sharing economy."


Wednesday, October 28, 2015

J. Crew Will End On-Call Shifts For U.S. Workers

ALBANY, N.Y. (AP) — J. Crew has agreed to end on-call scheduling at stores nationwide, following similar moves by several other major retailers, New York's attorney general said Friday.

In April, Attorney General Eric Schneiderman's office wrote to 13 retailers questioning the practice of keeping workers on call for shifts on short notice. The letter also cited possible violations of New York's requirement to pay hourly staff for at least four hours when they report for work.

"Workers deserve protections that allow them to have a reliable schedule in order to arrange for transportation to work, to accommodate child care needs and to budget their family finances," Schneiderman said Friday. The company has agreed to provide one week of advance notice about schedules at all its New York stores, he said.

Senior Vice President Maria Di Lorenzo said J. Crew ended on-call shifts nationally this month. The on-call shifts had helped the company deal with unexpected staff absences and schedule changes for product deliveries, she said. The retailer began discussing possible changes 10 months ago, has disabled the on-call feature from its scheduling software and now will fill needed slots on a voluntary basis, which may present some challengers for managers, she wrote in a letter to the New York attorney general.

"Further, J. Crew has strict anti-retaliation policies," Di Lorenzo wrote. "Consistent with those policies, J. Crew will not retaliate against associates who do not volunteer to cover these shifts."

That follows announced agreements confirmed by Bath & Body Works and affiliate Victoria's Secret, Abercrombie & Fitch and Gap Inc. Williams Sonoma said it's also ending the practice.

Urban Outfitters has agreed to end on-call shifts at its New York stores, according to the attorney general.

 

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Monday, October 26, 2015

Federal Judge Rips DOJ For Letting Corporate Lawbreakers Off Easy

A federal judge, disgusted by cushy deals that allow lawbreaking corporate bosses to avoid jail time, used a ruling in a little-known corruption case to tear into Department of Justice prosecutors this week. 

In an 84-page opinion Wednesday approving a deferred prosecution agreement for ex-Army contractors indicted in a bribery and kickback scheme, U.S. District Judge Emmet Sullivan, of the District of Columbia, slammed federal prosecutors for striking a similar deal with General Motors last month.

Faulty ignition switches in GM vehicles killed at least 169 people. The company, accused of concealing the defect from regulators and lying about it to customers, agreed to pay a $900 million fine as part of a deferred prosecution settlement. No individual GM executive or employee has been prosecuted.

In his opinion in the case of the former Army contractors, Sullivan called the Justice Department's deal with GM "a shocking example of potentially culpable individuals not being criminally charged."

“Despite the fact that the reprehensible conduct of [GM's] employees resulted in the deaths of many people, the agreement merely ‘imposes on GM an independent monitor to review and assess policies, practices, and procedures relating to GM’s safety-related public statements, sharing of engineering data, and recall processes' plus the payment of a $900 million fine," Sullivan wrote.

Charges against GM will be dropped in as few as three years. The deal was criticized as a slap on the wrist -- the fine amounted to less than one-third of the automaker's 2014 profit. As USA Today noted in an editorial last month:  

"Individuals are deterred from wrongdoing by the prospect of going to jail, much more so than by the prospect of seeing the corporate treasurer pay money to the government."

Days before the settlement with GM, the Justice Department released an internal memo pledging to prosecute individual corporate employees for white-collar crime, rather than just the institutions that employ them. That memo came after years of harsh criticism that the department had failed to successfully jail even a single top finance executive in the 2008 financial crisis.

Deferred prosecution agreements are intended to give defendants a chance to clean up their act and rehabilitate. If they comply (and pay fines), the charges are dropped. 

Increasingly, Sullivan wrote, such offers are extended to corporations accused of criminal misconduct.

From 2000 to 2005, the government made "just over four" deferred prosecution agreements a year, Sullivan wrote. That number "increased dramatically" since, with a record number this year, the judge said. 

Sullivan called the Justice Department's reliance on deferred prosecution deals for corporations "disappointing" and said the department should grant the same lenience to individuals.

"People are no less prone to rehabilitation than corporations," Sullivan wrote. "Drug conspiracy defendants are no less deserving of a second-chance than bribery conspiracy defendants. And society is harmed at least as much by the devastating effect that felony convictions have on the lives of its citizens as it is by the effect of criminal convictions on corporations."

H/T: National Law Journal

Also on HuffPost:


Saturday, October 24, 2015

Even The Most Elite Women Are Subject To The Gender Pay Gap

A business degree, even from one from a top school in the country, won't be enough to protect women from the gender gap in compensation.

A report Bloomberg Businessweek published Tuesday found that the difference in pay for men and women swells as time goes by. Both groups leave their MBA programs earning about the same -- men's $105,000 to women's $98,000 -- but the split becomes more exacerbated years later. By the time they're six to eight years out of school, median compensation for men is $175,000, and $140,000 for women. For the latter, that rounds out to about 80 percent of men's paychecks, proving unfortunately that the roughly 78 cents women make to a man's dollar still holds up.

The study counters arguments that the pay gap between men and women results from a discrepancy in education and skills, Businessweek reporter Natalie Kitroeff told HuffPost Live on Wednesday. "We're looking at them coming out of the same schools, in the same years," Kitroeff said. "It was surprising to find that there was such a persistent gap, and we found this across every single industry."

Men gain the most ground in year-end bonuses. When those are excluded, the pay gap shrinks. Women who graduated Columbia's business school between 2007 and 2009, for example, earned a median of $170,000 in 2014, while men raked in $270,000. The difference in base salaries, though, was just $30,000.

The study's findings also reject the notion that the gap stems from women choosing to go into fields that pay less. Generally, men do enter the more lucrative industries, including consulting, real estate and finance, at higher rates -- 43 percent of men versus 32 percent of women -- but "even when women went into the highest-paying industries, they were paid less," Kitroeff said.

And let's not forget that the gender pay gap starts way before higher degrees. At the most elite colleges in the U.S., male alumni far outearn their female classmates, with Harvard men earning an average of $53,600 more than women 10 years after they start their undergraduate studies.


Friday, October 23, 2015

Price-Gouging Pharma CEO Refuses To Talk About Drug Prices On TV

Martin Shkreli, the Turing Pharmaceutical chief executive reviled for jacking up drug prices, doesn't want to talk about drug prices anymore.

But he does want to be heard.

The so-called "most hated man in America" wanted to appear Thursday on CNBC to defend rival Valeant Pharmaceuticals against a short-selling firm's report accusing the company of Enron-like accounting fraud. But when producers said they wanted to probe him about drug prices, too, he refused to go on air.

Scott Wapner, the host of CNBC's "Halftime Report," tweeted the story:

Instead, it appears that Shkreli took his interview to Fox Business Network, Fox News' business and finance branch that has struggled to compete with CNBC for viewers. 

It remains unclear why his opinion on the subject is worth pursuing. However, it's bound to be entertaining television. 


Thursday, October 22, 2015

Why Jack Dorsey Gave A Huge Portion Of Square To A Charity

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Jack Dorsey did something unusual last week.

On Oct. 14, his financial services startup Square filed for an initial public offering, and Dorsey disclosed in the documents that he would give away 20 percent of the company to the Start Small Foundation, a charity he set up to serve struggling communities. The nonprofit’s first focus will be Ferguson, Missouri -- a hotbed of tensions over racial injustice located just outside St. Louis, Dorsey’s hometown.

The 15 million shares Dorsey gave to Start Small can be sold during the IPO, though it's unclear when that will take place or for how much the stock will sell. He promised the foundation another 40 million in the future.

“I’d rather have a smaller part of something big than a bigger part of something small,” he said in the regulatory filing.

Dorsey's move underscores a larger shift in corporate culture, wherein companies are increasingly tethering their financial profitability to a larger social mission in their vision of succession.

“It’s always been the 20th-century model that people do well in their business, make money, then turn around and as a result of largesse give sums of money to philanthropy and nonprofits,” Jonathan Storper, a partner at the law firm Hanson Bridgett, told The Huffington Post in an interview. “In the 21st century, we’re seeing people actually using business itself as a force for good.”

Kind Snacks, the company that produces the high-end fruit and nut Kind Bars, provides monthly grants of up to $10,000 to individuals or organizations making positive social impacts. Unilever, adopting practices from its ice cream subsidiary Ben & Jerry’s, took the first steps toward getting B Corporation certification, a voluntary status that holds the company to strict environmental and social responsibility standards. Kickstarter last month reincorporated as a public benefit corporation, enshrining in the company's charter its social mission to fund artistic projects.

Square isn’t quite there yet. The mobile payments firm -- which allows users to swipe credit cards on a small white device that attaches to a smartphone or tablet -- is still focused on turning a profit, particularly as it continues to lose money.

But Square has Dorsey, a rare tech executive who drew comparisons to Apple’s Steve Jobs this month as he assumed the top spot at both Square and Twitter, the popular microblogging company he co-founded. His existing celebrity, coupled with the heightened scrutiny on all of his actions as he helms two public firms, elevates Start Small as a potential model for other firms going public.

“Somebody with his profile is going to set the stage for more of this as people take their companies public,” Rick Alexander, the head of legal policy at the nonprofit B Lab, told HuffPost.

It’s not just an evolved sense of corporate citizenship driving companies to fund social good. Dorsey’s net worth, which Forbes this year estimates at $2.3 billion, has ballooned in recent years. The wealthier people get, the more they tend to give. And as they give more, they tend to want more control over their donations.

“In active philanthropy, the wealthy are not just content to write a check anymore,” Paul Roy, a partner at the law firm Withers Bergman specializing in nonprofits, told HuffPost. “They have foundations, they want to be active and they want to see the results. They want to feel more hands-on.”

But there’s a downside to that.

The desire for control leaves the massive pool of money set aside for charities -- about $358 billion in the U.S. last year -- divvied between the roughly 1.5 million nonprofits registered in the U.S. Creating a new organization every time a company or wealthy individual wants to foster change only shrinks the available slices of that pie.

“Just because you were successful in the for-profit world doesn’t mean that nonprofits are a bunch of bleeding-heart idiots that need you to come in and show them how it’s done,” Ken Berger, the managing director of the social-good data service Algorhythm, told HuffPost. He previously ran the nonprofit watchdog Charity Navigator. “We have one of the most complex and sophisticated nonprofit sectors ever seen. Partnering with others is the best approach.”
Square declined to comment on this story. Start Small did not respond by press time. 


Tuesday, October 20, 2015

IHOP Tweeted A Joke About Breasts. It Didn't Go Too Well.

A year ago, IHOP got the Internet’s attention when it sent out a tweet with a "hip new voice." 

“Who knew IHOP was so hip? The pancake chain has found its voice on Twitter, and it sounds an awful lot like a teenage hip-hop fan,” quipped Adweek at the time.

Since then, the breakfast haven has been using the social media platform as a way to engage younger customers, frequently sending out cheeky and slang-filled tweets. 

The strategy has been working in the company’s favor, with some of their posts garnering thousands of retweets. This week, however, IHOP was skewered for going a step too far.

On Sunday, the restaurant chain posted a photograph of a stack of pancakes with the caption: “Flat but has a GREAT personality.”

The backlash to the post was swift, with several IHOP customers expressing outrage at what they said was too racy a tweet.

"Can't teach my Girl Scouts that casual misogyny is okay," wrote Twitter user Laura Perkins Cox. 

Another user named Seamus Bellamy criticized the pancake house for "snark" and "sexism." 

There were other netizens who responded with humor -- and utter bafflement.  

The company has since taken down the post and issued an apology.

IHOP isn’t the only fast food company that has been using social media as a means to reach a younger customer base. Several other big chains, including Taco Bell and Burger King, have employed similar strategies.

 

Also on HuffPost:


Monday, October 19, 2015

The Secret Behind Norway's Electric Car Revolution

Norway is speeding past other countries in the electric car race.

The trick, it seems, is setting high vehicle taxes and offering generous exemptions.

By stripping electric cars of a 25 percent sales tax and a registration tax that averages more than $12,000 depending on  a vehicle's weight and polluting fossil fuel emissions, the Nordic country has zoomed past its original projections for swapping out its gas-burning fleet for electrics, according to a report published Friday in The New York Times. 

Norway expected 50,000 of the country's 2.5 million registered private vehicles to run on electricity by 2017. Instead, it hit 66,000 last month, in addition to 8,000 gasoline-electric hybrids.

But what's most impressive is how Norway powers those electric vehicles: gushing rivers. Over 95 percent of the country's electricity is produced by hydropower, according to 2011 data from the Norwegian Water Resources and Energy Directorate, a government agency. 

As David Jolly wrote in the Times:

That makes Norway’s electricity cleaner and relatively cheap -- a further impetus for adopting e-cars. (A country where much of the electricity is generated by coal-fired power plants would not see as many environmental benefits from switching to electric vehicles.)

And all that despite the fact that fossil fuels have enriched Norway. The country -- which is not part of the European Union and uses its own currency, the krone -- is the world's seventh-largest producer of oil and third-biggest natural gas exporter. 

The issue with electric cars in the United States is they suck energy from a grid powered by burning fossil fuels. That increases their carbon footprint. Considering electric cars are meant to reduce global emissions and combat climate change, that's a problem.

In contrast with Norway, hydropower made up just 6 percent of U.S. electricity production last year, according to the U.S. Energy Information Administration. Coal accounted for 39 percent, and natural gas hit 27 percent. 


Saturday, October 17, 2015

Sorry Folks, But Standing Desks May Not Make You Any Healthier

You've probably heard that keeping your rear planted in your desk chair for hours on end may be as much of a health hazard today as smoking was for previous generations.

Prolonged sitting has been linked to an increased risk of heart disease, cancer and even premature death. But at least we have standing desks to combat the problem, right? Maybe not.

According to a new study, published online in the International Journal of Epidemiology on Oct. 9, standing at your desk may be no better than sitting, and that's because it's the being still that has the negative impact on your health. (Maybe it's time to replace your standing desk with a treadmill desk.)

For the study, the researchers monitored the behavior and health of 3,720 men and 1,412 women over the course of 16 years. Beginning in 1985, the London-based volunteers recorded how many hours a week they spent sitting.

At the end of the 16-year period, the researchers tallied the hours and then checked the National Health Service Central Registry and determined that 450 of the participants had died. But the researchers found no correlation between time spent sitting and mortality.

The findings challenge previous research showing that sitting for long periods can shorten your lifespan even if you exercise often.

"Any stationary posture where energy expenditure is low may be detrimental to health, be it sitting or standing. The results cast doubt on the benefits of sit-stand work stations," Dr. Melvyn Hillsdon, associate professor of Sport and Health Sciences at the University of Exeter in England and a co-author of the study, said in a written statement.

The researchers concluded that sitting itself won't kill you. Rather, a sedentary lifestyle in general may be what's harmful to your health. 

"Research is not black and white, and if a single study finds X or Y that doesn’t mean that this is the truth we should all go along with," Dr. Emmanuel Stamatakis, associate professor at the University of Sydney in Australia and a co-author of the study, said in an email. "The recent study findings are in disagreement with the rest of the literature and there must be a reason for this."

Also on HuffPost:


Friday, October 16, 2015

Square, Mobile Payments Giant, Just Filed For Its IPO

NEW YORK -- Square, the mobile payment firm co-founded by Jack Dorsey, on Wednesday filed for an initial public offering.

In a press release, Square said its shares would be listed on the New York Stock Exchange under the ticker symbol "SQ." The company's Form S-1, filed with the Securities and Exchange Commission, did not specify the price of the shares or how many would be available for sale. Square hopes to offer up to $275 million in stock, though that amount may be subject to change. 

Based in San Francisco, California, the business is currently helmed by Dorsey, who is also the CEO of Twitter. Square offers peripherals for smartphones and tablets, allowing vendors to accept credit card payments, track their stock and send invoices.

The move is sure to send ripples through a financial world that has seen significantly fewer IPOs this year. No private U.S. companies valued at $1 billion or more -- so-called "unicorn" firms -- have gone public yet in 2015, according to The Wall Street Journal. Square was valued at about $6 billion a year ago, following a $150 million funding round.

The IPO filing comes more than a week after Twitter named Dorsey its permanent chief executive. The decision, just as Square was expected to go public, drew criticism from those who believe Dorsey's split attention will be blamed for future stumbles at the payments startup.

Even Square's SEC paperwork nods to the challenges Dorsey's dual responsibilities present.

"Jack Dorsey, our co-founder, President, and Chief Executive Officer, also serves as Chief Executive Officer of Twitter," Square wrote in its S-1. "This may at times adversely affect his ability to devote time, attention, and effort to Square."

Square will need all three.

The company processed $30 billion in payments from millions of merchants last year, and has begun offering business loans and payroll processing. But it's losing money. Its $104.5 million in losses in 2013 ballooned to $154.1 million in 2014. So far this year, Square was losing $77.6 million by the end of June, according to The Verge. 

To avoid withering under Wall Street's scrutiny, Dorsey will need to build out strong teams at both Square and Twitter, which lately faced its own ruthless probing by traders and analysts.

"To make something like this work, you have to have a world-class team around you," Sydney Finkelstein, management professor at Dartmouth College’s Tuck Center for Leadership, told The Huffington Post recently. "Effective leaders delegate. In this case, you probably have to delegate more than normal. … You have to be able to process in your brain two different worlds."

But -- despite Wall Street's obsession with quick, quarterly gains -- Dorsey said he plans to take a long-view approach to Square.

"As a public company our decisions will continue to reflect what we’ve done as a private one—we put our customers first," Dorsey wrote in the filing. "That means constantly asking the question: how can the financial system better serve people? We’ll measure ourselves by our commitment to take the long view and focus on building a company that creates value over decades and not just a few fiscal quarters out."


Thursday, October 15, 2015

Economics Nobel Prize Winner Radically Redefined What It Means To Be Poor

Princeton professor Angus Deaton won the Nobel Memorial Prize in Economic Sciences on Monday for his work on consumption, income and poverty. 

Much of his work focuses on how to measure poverty around the world. The question of who is poor, he says, is very easy to determine at a community level. It's doable at a national level. But when you try to determine just who is poor worldwide, it's nearly impossible. Figuring out what poverty is globally is a big part of Deaton's work.

He has asked whether poverty should just be measured in terms of the question, "Do you have enough to eat?" or whether there are other factors that should play into the definition -- and whether those factors are different across different societies. 

Deaton wrote a very good (non-technical) essay about the difficulties of measuring poverty back in 2003. In it, he writes of all the different factors that have nothing to do with having enough food that go into determining if someone is poor around the world:

Even if you have enough goods, they are worth little if you are not healthy enough to enjoy them. Children who live in an unsanitary environment will obtain little nutritional benefit from the food that they eat if they continually suffer from diarrhea. More broadly, girls who are denied the opportunity to go to school experience yet another type of poverty, the poverty of not being able to read and to participate in activities that are only open to the literate. People are also poor in another sense if they lack the resources to participate fully in the society in which they live, who in Adam Smith’s term “are afraid to appear in public,” even if their incomes would be sufficient in some other society.

Deaton's 2013 book The Great Escape looks at the interaction between health and wealth over the last 250 years, and how the two in combination have contributed to the amount of inequality that we see today. Here's a small excerpt (taken from a longer excerpt posted by Cardiff Garcia), in which Deaton argues that income inequality has a huge effect on democratic outcomes, and is therefore a big problem: 

The very wealthy have little need for state-provided education or health care; they have every reason to support cuts in Medicare and to fight any increase in taxes. They have even less reason to support health insurance for everyone, or to worry about the low quality of public schools that plagues much of the country. They will oppose any regulation of banks that restricts profits, even if it helps those who cannot cover their mortgages or protects the public against predatory lending, deceptive advertising, or even a repetition of the financial crash.

To worry about these consequences of extreme inequality has nothing to do with being envious of the rich and everything to do with the fear that rapidly growing top incomes are a threat to the wellbeing of everyone else.

In this video, Deaton himself gives an overview of his work on the origins of inequality.

For more on Deaton and his work, see Monday's posts from Alex Tabarrok and Tyler Cowen.


Tuesday, October 13, 2015

Self-Driving Buses Are Coming, But Not To America (Yet)

Singapore said Monday that it plans to start rolling out self-driving buses sometime next year.

The Ministry of Transport designated almost 4 miles of road to test the buses.

"We hope to one day deploy a network of demand-responsive shared vehicles to form a new mobility system for intra- and inter-town travel," the government said in a statement on Facebook. "This will provide convenient point-to-point transport mode within towns, and help us rely less on private cars. In time to come, we also wish to have self-driving buses operating on fixed routes and scheduled timings to reduce the heavy reliance on manpower."

But the tiny city-state isn't the only place in East Asia actively pursuing self-driving public transportation.

In nearby China, bus manufacturer Yutong said last October that tests on its autonomous bus yielded successful results while driving on a 20-mile stretch between Zhengzhou and Kaifeng, in Henan province.

By contrast, the race to produce safe self-driving vehicles in the U.S. has focused on personal cars. Google's self-driving cars look like individual bug-like pods. Tesla, on the hand, has added autonomous features to its newest all-electric vehicles.


Monday, October 12, 2015

Why Elon Musk Calls Apple A 'Tesla Graveyard'

For months, Apple has been hiring former Tesla engineers to work on an electric car. But Tesla CEO Elon Musk doesn't seem to feel threatened.

"They have hired people we’ve fired," he said in an interview published Thursday by the German business newspaper Handelsblatt. "We always jokingly call Apple the 'Tesla graveyard.' If you don’t make it at Tesla, you go work at Apple. I’m not kidding."

Apple has tentative plans to release a car in four years. To help reach this goal, the company hired Doug Betts, formerly of Toyota, Nissan and the Chrysler Group, in July. It also poached Paul Furgale, a robotics specialist, from the Swiss Federal Institute of Technology earlier this year.

Still, Tesla -- which last month released its second consumer vehicle, the Model X sports-utility vehicle -- isn't concerned about the competition. Musk famously freed up most of Tesla's patents last year, outright inviting other corporations to join the electric auto industry by using the company's technology. Rising tides raise Tesla's ship, so to speak, and Musk wants to open the floodgates to electric cars.

But Apple's specialties, consumer technology such as its Watch and iPhone, don't translate to vehicles, Musk said.

"Did you ever take a look at the Apple Watch?" he asked, laughing. "No, seriously: It's good that Apple is moving and investing in this direction. But cars are very complex compared to phones or smartwatches. You can’t just go to a supplier like Foxconn and say, 'Build me a car.'"

He has a point. Last year, Apple bungled a mere software update. Building an entire line of cars from scratch is ambitious, to say the least. 

Even so, Musk said Apple's move makes sense.

"[F]or Apple, the car is the next logical thing to finally offer a significant innovation," he said. "A new pencil or a bigger iPad alone were not relevant enough." 

Google, too, has become a rival for Tesla. The company has made enormous strides recently in its self-driving car program, which Tesla competes against with its own driverless car ambitions.

But Musk is a close friend of Google, and often sleeps over at the home of Larry Page, the chief executive of Google's parent company, Alphabet.


Saturday, October 10, 2015

Stephen Hawking Says We Should Really Be Scared Of Capitalism, Not Robots

Machines won't bring about the economic robot apocalypse -- but greedy humans will, according to physicist Stephen Hawking.

In a Reddit Ask Me Anything session on Thursday, the scientist predicted that economic inequality will skyrocket as more jobs become automated and the rich owners of machines refuse to share their fast-proliferating wealth.

 

If machines produce everything we need, the outcome will depend on how things are distributed. Everyone can enjoy a life of luxurious leisure if the machine-produced wealth is shared, or most people can end up miserably poor if the machine-owners successfully lobby against wealth redistribution. So far, the trend seems to be toward the second option, with technology driving ever-increasing inequality.

Essentially, machine owners will become the bourgeoisie of a new era, in which the corporations they own won't provide jobs to actual human workers.

As it is, the chasm between the super rich and the rest is growing. For starters, capital -- such as stocks or property -- accrues value at a much faster rate than the actual economy grows, according to the French economist Thomas Piketty. The wealth of the rich multiplies faster than wages increase, and the working class can never even catch up.

But if Hawking is right, the problem won't be about catching up. It'll be a struggle to even inch past the starting line.  

Also on HuffPost:


Friday, October 9, 2015

California's Drought Is About Economic Inequality

This story was originally published by CityLab and is reproduced here as part of the Climate Desk collaboration.

Bulmario Tapia Madrigal doesn't want to shower in a stream of dirt. He doesn't want to cook with bottled water, haul a bucketful to flush the toilet, or wonder if he has enough water to clean the diabetes wounds on his feet. But since his well went dry three months ago, that's how life has been.

Some relief is coming for the 70-year-old orange picker. On a dry August afternoon, he zips his motorized wheelchair up and down his driveway, anxiously watching a crew of workers. They're nearly finished connecting his pipes to a new emergency water-storage tank in his front yard, so large it casts a shadow over Madrigal's red-trimmed bungalow.

"Over by the bakery, there's a lady who has lived like this for two years," Madrigal says in Spanish. He sweeps his arm toward the street, where the dusty front yards of neighbors are also occupied by hulking water tanks. "Anyone who used a well before no longer can."

This is not a developing nation. This is East Porterville, California, where more than 500 wells have dried up since the beginning of the state's worst-on-record drought four years ago. It's home to most of the 1,675 wells (and counting) that are sucking dirt in Tulare County. Tulare is one of the eight inland counties that make up the San Joaquin Valley, the richest agricultural region in the world.

Tulare County has been working with local nonprofits to provide and refill storage tanks for low-income families who've run out of well water. There are an estimated 1,750 households in East Porterville, and at least 35 percent of residents live in poverty. For people like Madrigal, the tanks are literally lifesavers.

But they're also a mark of disparity. If it weren't for those tanks, you might never know that where Madrigal lives is separate from the city of Porterville. Even though his address reads "Porterville," he lives on unincorporated county land adjacent to municipal limits. That means he is just beyond the reach of Porterville's formal water district, which has continued to serve its more than 16,000 customers with clean, running water without issue throughout the drought.

Dry wells are spreading beyond East Porterville. There is a pattern to the spread:Poor, unincorporated, predominantly non-white communities are the ones struggling. Caught between city and county, water issues are nothing new to these densely settled places. Many have dealt with a lack of appropriate water infrastructure—and contaminated supplies—for decades. The drought is only the newest, most visible layer in a strata of disparities.

"The land is half and half here," Madrigal says. "Half dry, half alive."

Madrigal and his neighbors have long relied on wells that pump water from the ground, the same reserves used by surrounding farms to keep crops lush. Since the beginning of the drought, farmers have drilled their wells deeper, sucking up more of the ground supply. With scarce rain, the aquifer hasn't been recharged. Tulare County's water table is shallow, relative to other parts of the San Joaquin Valley. So more and more wells are coming up empty.

It's tempting to call what's happening here a slow-motion natural disaster. It is also tempting to point the finger at farmers, as so much media coverage of the drought has.

But those hit hardest by the drought have been vulnerable for decades. The San Joaquin Valley's history of Wild West land-use planning, its governance structures, and the political disenfranchisement of an entire class of citizens have created a human-made crisis.

The sprawling, underserved San Joaquin Valley 

A recent report by the California nonprofit PolicyLink counted 525 poor, densely populated, unincorporated communities throughout the San Joaquin Valley, inhabited by some 310,000 people. Some, like East Porterville, are on the fringes of larger towns. Others are islands within city limits. And still others are scattered to the hinterlands, far from anywhere else.

Sixty-five percent of the population in these places are people of color. Sixty-four percent are low-income.

Waves of black and Latino farmworkers settled many of these communities in the first half of the 20th century, sometimes living in tents or shacks until they had the means to build their own homes. Until the 1960s, land use—an authority reserved for local governments in California—was almost totally deregulated in the region. Hundreds of subdivisions sprang up throughout the San Joaquin Valley, with little thought about the future impact of disconnected sprawl.

Many of these places probably looked good to poor farmworkers: inexpensive, close to the fields, with low taxes and little government oversight. Outside the city, you could keep the kinds of animals you wanted, and the kinds of vehicles. What land-use restrictions existed were barely enforced.

"There are lots of good reasons to build outside the city," says Eric Coyne, an official with the Tulare County Resource Management Agency. "At one point, a shallow well might have been sufficient for a family."

It's true: For most of the past century in California, there has been rain to replenish groundwater supplies. And there used to be more surface water. East Porterville, for example, is just across from the once-overflowing Tule River.

Carrie Bonner was seeking field work and an affordable place to live when she came to the Fresno County subdivision of Lanare in 1948. At that time, it was mainly her family and other black families, settling in substandard farmworker housing until they'd saved enough to buy some land.

"You got to choose where you put your house," the 91-year-old says. "There was no one saying, 'Go here' or 'Go here.' You dug your well. It was a community effort."

Lanare sits right next to Riverdale, a wealthier community settled at around the same time by white dairy owners. Some research suggests that Riverdale real estate agents excluded people of color from settling there in the first half of the 20th century, or at least encouraged them to look elsewhere. Certainly, the poverty that these farm workers faced locked them out of pricier lots. Elsewhere in the San Joaquin Valley, racially restrictive covenants did expressly keep people of color out of white communities.

Michelle Anderson, a Stanford University public law scholar who focuses on state and local governments, writes in the UCLA Law Review about the development of these subdivisions:

Neglect by white officials, often compounded by community need to keep housing costs low, resulted in a lack of rudimentary infrastructure, including paved streets, sewers, utilities, and water. These unplanned, unregulated communities retained a rural character—embodied by backyard husbandry and subsistence farming—that reflected the importance of self-sufficiency during times of employment insecurity.

Over the years, that government neglect was explicit in some cases. An ordinance in Tulare County's 1971 general plan (updated only within the last decade) is particularly grim, intentionally aiming investment away from 15 poor, unincorporated communities—assuming that they would eventually depopulate. The plan reads:

Public commitments to communities with little or no authentic future should be carefully examined before final action is initiated. These non-viable communities would, as a consequence of withholding major public facilities such as sewer and water systems, enter a process of long term, natural decline as residents depart for improved opportunities in nearby communities.

Today, 13 of those "non-viable" communities are still around. They include Seville, which went into a water shortage emergency during the week in August that I visited the San Joaquin Valley. They also include East Orosi, Farmersville, Yettem, Monson, and Exeter—all places where wells have dried up in the last year. Far from disappearing, some of these communities have even grown since the 1970s, surviving on the insufficient infrastructure that marked them for disinvestment. Many are now adjacent to cities that crept up toward them. By density measures, some read like suburbs. They are not temporary places, as Tulare County had hoped.

Clearly, steering funds away has not encouraged residents to "depart": Property values are so low that it's hard for residents to move, even if they wanted to.

Which not everyone does. The characteristics that attracted residents to county subdivisions in the first place—their low cost, minimal government oversight, and spirit of self-sufficiency—still appeal. Many residents retain a good deal of pride in a place they've built with their own hands.

Yet for water (and other types of infrastructure), many of these poor, county subdivisions remain largely self-reliant—using either small, private wells, like in East Porterville, or community water systems that source from a few larger, common wells. The recent drought is hardly the first time that access to drinking water from these wells has been compromised.

When water is available, it's not always safe to drink

Surrounded by farmland, many unincorporated communities have had fertilizers, pesticides, and livestock waste leaking into their groundwater for decades. The San Joaquin Valley has the highest rates of drinking water contamination in the state, and the largest number of public water systems found in violation of EPA limits for nitrates, arsenic, fecal coliform bacteria, and other contaminants. The health effects can be severe.

Unincorporated places are particularly at risk for contamination, since their wells tend to be shallower. The drought is exacerbating this problem: With less water, concentrations of groundwater contaminants are spiking.

All of this, despite the fact that California has legally declared that every citizen has a right to safe drinking water.

In Isabel Solorio's spartan kitchen in Lanare, the countertops are lined with plastic gallon jugs of water. Solorio stands at her sink, letting water run from the tap. "Sometimes it's slimy," the 50-year-old says, rubbing her fingers in the stream. She puts her fingertips to her nose, hesitantly. The water has a faint sulfuric mustiness.

In the nearly 28 years she's lived here, Solorio says she can't remember a time when the water was safe to drink. Levels of arsenic (which occurs naturally, unlike nitrates from runoff) in Lanare's water supply are are well above the EPA limit. For her, the drought is just another piece of a world in disorder. "The atmosphere and the Earth are sick," she says in Spanish, looking out the kitchen window. There's a children's play structure in her yard and a sea of alfalfa fields beyond it. "And people are sick. All these dots connect."

In addition to cleaning houses for a living, Solorio has acted as Lanare's lead community activist, convening residents and legal advocates on a monthly basis to fight for safe drinking water and other basic services (Lanare also lacks a sewage system, street lights, and sidewalks).

In 2002, the community won a $1.3 million federal grant to construct an arsenic treatment plant, which took five years to build. But the project was mismanaged, and after the plant opened, operational costs skyrocketed for the low-income community of 600. The plant ran for just six months before shutting down, and now sits disused in a chain-link cage next to Lanare's community center. The community's water system—which sources from two common wells—then went into state receivership.

The water that comes out of residents' taps is not safe to drink. Yet Solorio and her neighbors still pay $54 a month for their water bills, largely to pay off debts incurred by the plant. Meanwhile, they rely on jugs of water delivered and paid for by the state.

Will the plant ever come back into commission? Phoebe Seaton, co-director of the Leadership Counsel for Justice and Accountability, which provides legal and advocacy services to Lanare, darkly jokes that the best solution might be to turn it into a jungle gym.

The county won't budge

It's not clear how Lanare is going to move forward. In the absence of a formal town government, a special "community services district" is supposed to run Lanare's water system after its receivership ends. That "CSD" consists of volunteers, one of whom is Solorio's husband, who also works full-time as a contract welder on farms. Right now the CSD doesn't even have enough members to constitute a quorum.

Could the county intervene? Lanare residents say that officials had hardly even visited until last July, when Fresno County Supervisor Buddy Mendes sat down for a meeting in the community center after repeated invitations. Residents aired their grievances, and Mendes listened. But when one resident asked what concrete steps he was was going to take to resolve Lanare's problems, "he told them the best thing that could happen was that he had come there," Veronica Garibay, the Leadership Counsel's other co-director, recalls.

Mendes says he thought it was a productive meeting. "I told them to straighten out their affairs," he says. He feels Lanare is on its way to being solvent, and "fixing its culture so that everyone pays their water bills," a concept that had to be "pounded into people." Beyond that, Mendes says it's up to the community to figure out how to get their needs met.

County governments in the San Joaquin Valley aren't legally responsible for providing urban infrastructure, nor are they set up to do so. "We could have designed government schemes where counties are really tailored to rural government, but by and large we didn't," says Anderson, the Stanford legal scholar. She points to 1964's "One Man, One Vote" US Supreme Court decision (currently being challenged) as a critical reason that it's so difficult for rural areas to leverage county resources. When it comes to voting on how money is allocated, city voters outnumber rural voters heavily.

When asked how Fresno County might be able to help Lanare obtain safe drinking water, Bernard Jimenez, Fresno County's deputy director of planning, echoes Mendes' sentiment. "The county does not have the resources or the funding to provide services to all the unincorporated communities," he says. "That's just the way it works."

But compare the people who are supposed to run Lanare's water system to the fully trained, paid employees of a municipal water district.

Then add to that the challenge and cost of maintaining a safe water system—an inherently expensive endeavor, even more so for a poor community of 600 that lacks economy of scale—and it's incredible that the residents of Lanare have made it this far.

It's even more incredible that, as the drought drags on and water becomes all the more precious, there's been little meaningful government intervention.

"It is inspiring for people to go these distances without government support, in a country where so many forms of infrastructure are subsidized through taxes," says Anderson. "But there are limits to individual self-reliance. There are things people cannot build all by themselves."

City connections

Government neglect in the San Joaquin Valley's unincorporated communities is certainly not limited to counties. As cities in the San Joaquin Valley grew and annexed more surrounding land, they often avoided the poorest communities as they did so. That's generally how "island" communities—unincorporated patches within city limits—formed.

For those communities, and for those like East Porterville on the fringes of larger cities, the question of why the city can't just extend some pipes can seem bewildering.

At the chain-link fence at the front of his property, Madrigal points to a clearing of pines just beyond the last house on his street. "Just right over there is the supply cut-off," he says. "I believe there's water for the town. It's just this area that's left off."

The workers in his yard finish their work. They flip the switch on the pump they've installed and water starts coursing through Madrigal's pipes for the first time in months. He tells me I can go inside to check the kitchen sink. I flip the handle up. Sure enough, water flows out, clean and pure. But Madrigal's supply is limited to what's in the tank. So I quickly turn off the tap.

The drought is dragging on. Water is only becoming more precious and more expensive. Questions of annexation and consolidated water services are fundamental to the debate around how these communities are to survive. State and local governments are beginning to ramp up efforts to invest in and connect unincorporated communities to larger, more reliable systems. But in a region plagued with a legacy of questionable planning decisions, there's plenty standing in the way.

"We all want to serve these people," says Coyne, the Tulare County official. "The question is, how do we get those funds?"

An equally important question is: Where do they get the water?

Next week, I'll try to answer both.


Thursday, October 8, 2015

How Jack Dorsey Can Keep His Chill While Running Two Companies

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Jack Dorsey has his plate full -- doubly full.

Twitter on Monday named him its permanent CEO, nearly four months after he took over as the interim chief executive following Dick Costolo's sudden departure.

The company he co-founded nine years ago is in flux, struggling to attract new users and make money. Shareholders clamored for Dorsey to stay in the position in large part because few other business leaders seemed qualified to meaningfully correct Twitter's course. 

But Dorsey is also the full-time chief executive of mobile-payments firm Square, a position he will keep in addition to heading up Twitter. Square is quietly preparing for an initial public offering -- a process that, judging from Twitter's own IPO, can become quite volatile.

That's a lot for anyone to take on. As much as he's going to need the people around him, Dorsey -- who's known to meditate and jog early in the morning and take long, meandering walks during the day -- will also need to turn inward for the tools to help him succeed in both roles.

Twitter is a social media company. Square processes credit card transactions. The two firms have little in common, which helps in a certain way -- perhaps there are few conflicts of interest. But the arrangement will require Dorsey's mind to be nimble. He'll navigate very different realities at the helm of each company.

"It's unusual and really challenging," Sydney Finkelstein, management professor at Dartmouth College’s Tuck Center for Leadership, told The Huffington Post.

Finkelstein said the people in Dorsey's professional inner circle will be crucial to him, perhaps more than they've ever been. 

"To make something like this work, you have to have a world-class team around you," Finkelstein explained. "Effective leaders delegate. In this case, you probably have to delegate more than normal. … You have to be able to process in your brain two different worlds."

Dorsey must also remain mindful of his own emotions to prevent himself from succumbing to stress and becoming reactionary.

“Oftentimes what we do is we withdraw and we tighten and we become reactive,” Janice Marturano, executive director of the nonprofit Institute for Mindful Leadership, told HuffPost. “That’s exactly the opposite of what we need to do during stressful times in our lives.”

Simple activities like napping, taking a walk and finding a quiet room to meditate for 10 minutes can be helpful. Some of this is undoubtedly part of Dorsey's routine already, but not everyone has time for that. Training the brain to take what Marturano calls “purposeful pauses” -- receding into the mind during a brief moment of free time -- can help keep a leader grounded, even when she or he is stretched thin.

“In times of real craziness, you have to be able to find your training that allows you to meditate with a cup of coffee, or with the two minutes you walk from this office to this meeting,” said Marturano, whose book Finding The Space To Lead was released recently in paperback. “Rather than texting along the way, you say, ‘I’m going to use that time for meditation.’”

To be sure, not everyone enjoys the perks of a chief executive whose net worth Forbes estimates at $2.2 billion. Many workers struggle as wages remain low. Nearly two million people in the United States work multiple part-time jobs, and nearly 1.6 million of those do not have a primary full-time job. That means many are likely disqualified from receiving health insurance coverage or other benefits as part of their compensation. The perks and privileges enjoyed by Dorsey and others in the executive set certainly make their struggle a bit less difficult.

Still, Marturano said the principles of mindfulness apply as much to workers stocking shelves for minimum wage as they do to someone running two large technology companies.

"We influence the people around us every day, so we're all leaders," she said. "It's about making the time to reflect." 

 


Tuesday, October 6, 2015

At This Rate, It'll Take 100 Years To Get Gender Equality At Work

Things are improving so slowly for women in corporate America that we aren’t going to achieve gender equality at the top for another 100 years, according to a report released Wednesday.

It's not for the reasons you might think -- i.e., it's not a “mommy issue.” Both women and men reported feeling strained by the competing pulls of work and family, according to the survey of nearly 30,000 workers at 118 North American companies. The survey was conducted by McKinsey & Company and LeanIn.org, a nonprofit focused on women's advancement founded by Sheryl Sandberg, chief operating officer at Facebook.

The big, ugly, hard-to-fix issue, the study suggests, is gender bias. That contradicts a lot of the conventional wisdom about why women don’t make it to the so-called C-suite -- the highest levels of a company where you find the jobs with “chief” in the title, like chief executive and chief finance officer. Only 17 percent of those lofty positions are held by women, according to the McKinsey/LeanIn survey. There are only 24 female CEOs on Fortune’s list of the 500 biggest companies in the U.S. That's an improvement from 1998, when there was just one woman on the list, but it still means that men hold the chief executive spot at over 95 percent of those businesses.

“Some of the biggest barriers are cultural and related to unconscious biases that impact company hiring, promotion, and development processes,” said Dominic Barton, global managing director of McKinsey & Company, in a press release. He's using the current corporate jargon for sexism at work.

These days, sexism has (mostly) moved beyond the crass discrimination of the "Mad Men" years, shape-shifting into something we now call unconscious bias -- the things a lot of us believe about women without even realizing it. These attitudes are harder to combat, or even prove, but they show up again and again in the research. A lot of people, for example, believe on some level that women are less competent than men. There's also something called a "maternal bias," in which mothers who do well at their job are disliked -- and kept from advancing -- because they're believed to be terrible parents. 

Women hold 45 percent of entry-level jobs at the companies surveyed, and their ranks thin out as you go higher. Only 27 percent of vice presidents at those companies are women, as are 23 percent of senior vice presidents and 17 percent of C-suite execs. These figures are a very slight improvement from 2012 (see the chart below). Very slight -- that’s where that 100-year estimate comes from. 

So what’s going on? First off, women aren’t quitting their jobs or “opting out.” In fact, the survey found that women, on average, quit their jobs at the same rates as men, or even less often. At the higher levels, women are more likely than men to stick around, the study found.

The issue is that women aren’t getting promoted at the same rate as men -- and at every step along the corporate ladder, women say they are less interested in becoming a top executive.

The reasons why are telling. For single women, the main reason they said they didn’t want to advance any higher at work was stress. And while women with children said the main reason they didn't want to advance was because of work and family pressures, stress came in at a very close second for that group.

This isn't a case of "women are uniquely unsuited for the corporate environment because of their families and stuff." For men with children, the difficulty of balancing work and family was also the top reason they weren't interested in holding a higher-ranking job -- 62 percent of men with children said that, compared to 65 percent of women with children. And mothers were 15 percent more interested in becoming a top executive than the women surveyed who didn’t have children.

“Historically, we thought women were less interested in promotions because of their concerns with family responsibilities,” Rachel Thomas, the president and co-founder of LeanIn, told The Huffington Post. “This study points to a new reason: There’s something in the workplace that’s more stressful for women. Women say stress and pressure is a top obstacle for them -- all women, not just mothers.”

The stress, Thomas suggests, comes from the bigger hurdles women face at the office. For example, there’s research showing that women are often believed to be less competent at their jobs than they really are, while men are often believed to be more competent than they are. Women have to prove themselves again and again.

There's also a Catch-22 involving personality: Women who are seen as competent are less likely to be seen as likable, and women viewed as more likable are less likely to be seen as competent, research has shown.

“We always say that women walk on a tightrope," Thomas said. "Men are not on that tightrope."

According to the report, “women are almost four times more likely than men to think they have fewer opportunities to advance because of their gender -- and are twice as likely to think their gender will make it harder for them to advance in the future.”

Yet most men surveyed said that women had equal or greater opportunities at work than men do.

"There’s a break between what people think and how they really understand the issue,” Thomas said.

LeanIn, of course, wants to change things. The group’s report contains a lot of good advice for companies looking to advance women:

  1. Gather the data. Companies must systematically look at how many women they employ and how many women they promote. You need to be able to truly see the problem in order to fix it. Some companies, like Accenture and Ernst & Young, already do this.
  2. Make it a priority. If leaders care about this, everyone else will, too. Get managers involved. Hold them accountable for achieving gender equality goals. Make sure employees know how to counteract bias. You see more companies like Facebook and Google doing unconscious bias training these days.
  3. Create programs that actually help. At PricewaterhouseCoopers, for example, the performance review process is structured in such a way that it doesn’t hurt women who take maternity leave.

There’s no magic bullet on this issue, Thomas said. You can’t just create a “women’s networking group” or say you’re focusing on the issue and expect the problem to vanish.

The report also touches on the gender inequalities that exist in other areas of life. For example, women still report that they do more of the work at home, which undoubtedly adds to their stress. 

There are a lot of things companies need to do, Thomas said. “This is a big ship we’re trying to turn.”


Monday, October 5, 2015

ATM Fees Have Never Been Higher

Ever been a little bit lazy or drunk and out too late and used a random ATM on a sidewalk, in a bar, at some strange bank? This is your annual reminder to stop.

The average out-of-network ATM fee is now $4.52, up 4 percent from last year and 21 percent since 2010, according to a report released Monday from Bankrate.com, a personal finance site that tracks banking costs. That includes both the fee charged by your bank and the out-of-network fee charged by the ATM operator.

“In all likelihood these fees are going to continue to go up,” Greg McBride, Bankrate’s chief financial analyst, told The Huffington Post.

Cities With Highest Average ATM Fees

Atlanta $5.15

New York $5.03

Phoenix $4.88

Miami $4.84

 Milwaukee $4.78

Cities Lowest Average ATM Fees

San Francisco $3.85

Cincinnati $3.86

Kansas City $4.01

Dallas $4.11

Seattle $4.21

Bankrate surveyed a total of 243 banks in 25 large U.S. markets in July and August, looking at ATM and overdraft fees of interest and noninterest accounts.

McBride said this is the ninth straight year ATM fees have gone up. And it’s happening for a bunch of reasons. First, people have gotten smarter about not using random ATMs, McBride said. Second, banks feel comfortable raising out-of-network fees because they don’t have to worry about alienating non-customers.

But mostly this is the result of regulations passed after the financial crisis that make it slightly more difficult for banks to levy more hidden and sneaky fees elsewhere. For example, a 2009 law requires that bank customers opt-in if they want the bank to lend them money when they overdraw their accounts.

Another law, part of the goliath Dodd-Frank Act, restricts the amount of money banks can charge retailers when you pay with a debit card, so-called swipe fees. 

So banks are making up the lost revenue at the ATM and by charging more for checking accounts. “If you own a restaurant and hamburger prices are restricted, you’d raise the price of soda and fries,” McBride explains.

Bankrate’s survey also found that just 37 percent of non-interest checking accounts are completely free, down from 76 percent in 2009.

If the fee picture seems bleak to you, the good news is: These ATM fees are much easier to avoid. You just need to stick with in-network ATMs and plan out your month of cash consumption a little more carefully. If you’re in a pinch, you can also choose to get cash back when you’re shopping at your local supermarket, McBride said.

Less hopeful: This is a strategy that won't be as easy for those typically lower-income people who live in underbanked areas.

Be careful out there, everyone.


Via: NerdWallet




 


Saturday, October 3, 2015

Massive Data Breach At Experian Exposes Personal Data For 15 Million T-Mobile Customers

Experian, the world's biggest consumer credit monitoring firm, on Thursday disclosed a massive data breach that exposed sensitive personal data of some 15 million people who applied for service with T-Mobile US Inc.

Connecticut's attorney general said he will launch an investigation into the breach.

Experian said it discovered the theft of the T-Mobile customer data from one of its servers on Sept. 15. The computer stored information about some 15 million people who had applied for service with telecoms carrier T-Mobile during the prior two years, Experian said.

T-Mobile Chief Executive John Legere said the data included names, addresses, birth dates, Social Security numbers, drivers license numbers and passport numbers. Such information is coveted by criminals for use in identity theft and other types of fraud.

"Obviously I am incredibly angry about this data breach and we will institute a thorough review of our relationship with Experian," T-Mobile Chief Executive John Legere said in a note to customers posted on the company's website. "But right now my top concern and first focus is assisting any and all consumers affected."

The Experian breach is the latest in a string of massive hacks that have each claimed millions - and sometimes tens of millions - of customer records, including the theft of personnel records from the U.S. government this year, a 2014 breach on JPMorgan Chase and a 2013 attack on Target Corp's cash register systems.

It is also the second massive breach linked to Experian. An attack on an Experian subsidiary that began before Experian purchased it in 2012 exposed the Social Security numbers of 200 million Americans and prompted an investigation by at least four states, including Connecticut.

Experian on Thursday said it had launched an investigation into the new breach and consulted with law enforcement.

The company offered two years of credit monitoring to all affected individuals. People, however, said that they did not want credit protection from a company that had been breached.

Legere responded by promising to seek alternatives.

"I hear you," he said on Twitter. "I am moving as fast as possible to get an alternate option in place by tomorrow."

Experian said the breach did not affect its vast consumer credit database.

Legere said no payment card or banking information was taken.

T-Mobile had nearly 59 million customers as of June 30. A representative for the carrier said that not all 15 million of the affected applicants had opened accounts with T-Mobile.

The telecom carrier's shares were down 1.3 percent in extended trading after closing little changed at $40.13 on the New York Stock Exchange.

In the earlier data breach affecting Experian, a Vietnamese national confessed in U.S. court last year to using a false identity to opening an account with the unit, known as Court Ventures, sometime before Experian purchased it in 2012.

A spokeswoman for Connecticut Attorney General George Jepsen said on Thursday that it would investigate the latest attack.

The spokeswoman, Jaclyn Falkowski, declined to elaborate on the T-Mobile incident, but said the investigations of the Court Ventures matter "is active and ongoing."

(Additional reporting by Karen Friefeld and Arathy Nair; Editing by Leslie Adler)

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Friday, October 2, 2015

Is The President Of Planned Parenthood Underpaid?

Rep. Jason Chaffetz (R-Utah) suggested on Tuesday that Planned Parenthood President Cecile Richards was overpaid when Richards testified before Congress regarding continued government funding of the organization.

But to think that Richards is paid too much is to be ignorant of the (quite publicly available) facts.

Richards' salary was about $425,000 last year, with a total compensation of just over $590,000. That's significantly less than what the heads of comparably-sized nonprofits usually make.

The New York Times crunched the numbers for similarly large nonprofit health care providers (mostly hospitals) as well as for large nonprofits in general:

Ms. Richards’s pay is similar to that of a chief executive of a hospital with revenue a little more than a tenth of Planned Parenthood’s — about $151 million, according to Dr. Jha’s analysis of data from Guidestar, a company that analyzes nonprofits’ annual tax filings ... In Guidestar’s report on nonprofit pay, among the 3,335 organizations in its highest budget category — nonprofits bringing in more than $50 million — average compensation is $689,973, about 17 percent more than Ms. Richards earns in total compensation.

The real question is whether anyone should care that Richards makes less than the average president of a large nonprofit.

Planned Parenthood has a symbolic importance as a provider of low-cost health care to women who might otherwise have nowhere to turn. Should it also be an organization whose female executives are paid more than most? That would also give it symbolic importance. But that is not the organization’s mission.

Planned Parenthood is one of the most controversial nonprofits around. Clinics and providers are violently attacked on a fairly regular basis. Richards probably deserves hazard pay above and beyond the average salary.

Then again, despite the controversy, every dollar that Richards doesn't make is a dollar Planned Parenthood can use for something else related to its mission. And that's almost certainly a good thing.


Thursday, October 1, 2015

Here's Everything We Know About The New Tesla Model X

FREMONT, Calif. -- Amid great fanfare and expectations, Tesla Motors unveiled the Model X, its all-electric SUV, at an event Tuesday night at its Bay Area factory. 

The Model X is the second car available for sale from the electric automaker, which introduced the Model S sedan three years ago. The high-speed Roadster, its first car, was discontinued in 2012.

The all-wheel-drive, seven-passenger X could help Tesla crack into the SUV market. The vehicles experienced a surge in sales over the past year and are popular with female drivers. 

Shoppers can put down $5,000 on Tesla's website to reserve an X when they start rolling out. The base price actually runs up to $132,000 for the Signature Series, which includes add-ons like an autopilot mode and heated steering wheel and seats. 

A less expensive version, the $35,000 Model 3 sedan, is expected to come out in 2017. 

The X boasts a lot of power. It goes from o to 60 mph in 3.2 seconds, and has a range of about 250 miles before the battery needs a recharge.  

Plus, it's stylish. A new feature, the "falcon wing doors," swoop out and up. (It's easy to picture "Silicon Valley" character Russ Hanneman approving of the design.) There are three rows of seats, but the second row holds just two passengers.

The X features a windshield that extends above the driver's head, offering panoramic views and the feel of a helicopter cockpit, Musk said.

Most importantly, though, Musk said that the Model X is safe.

"We've made the safest SUV ever," he said. Sensors can automatically apply the brakes or steer away from cars and dangerous objects, he said during the debut, which was webcast from Tesla's Fremont, California, factory. "There's really nothing that's more important" than safety.

Eyes might be fixed on those back seats, because CEO Elon Musk said in August that they had become a problem during production.  

Tesla experienced success in the luxury market with the Model S, which was the second-highest selling luxury model last year. With the Model X, Tesla is introducing an electric SUV at least a few years before competitors like Mercedes, Porsche and General Motors crack into the field. 

For now, Tesla is niche player. It is forecast to sell almost 29,000 cars this year, according to LMC Automotive. Ford, in contrast, is predicted to move almost 2.5 million vehicles. Analysts see the Model X as a step toward somewhat wider appeal. 

 

“Tesla wants to be a mainstream automaker,” said Doug Gilman, an industry analyst for Frost & Sullivan. “To be a competitive automaker you have to have a whole host of vehicles. You can’t just have one super.”

An SUVs safety and size might attract female drivers with families, analysts said. If the X outsells the S, experts will probably deem the new line a success. 

“The big potential for the Model X is that it’s going to open up a whole new market that they had to fight a little harder for with the Model S. That’s the female market,” said Karl Brauer, a senior director at Kelley Blue Book. “There’s a huge market out there.”

The Fremont factory looked more like a nightclub on Tuesday night as thousands of attendees who had paid at least $5,000 to reserve a Model X sipped wine while listening to remixed versions of hits from Dolly Parton and the Rolling Stones.

Though attendees had yet to see the Model X in person, some people said they had faith in Tesla based on the quality of the Model S.

"I love my Range Rover, but I can't stand going to the gas station," Dana Cappiello, 55, a realtor from San Francisco, told The Huffington Post."It was as simple as that." 

She was peeved by the late start. CEO Elon Musk took the stage in a dark jacket and jeans just before 9 p.m. PST, nearly an hour behind schedule.

The audience erupted with laughter as he touted the environmental benefits of his all-electric vehicles while alluding to Volkswagen's ongoing scandal over software that helped its cars outrageously cheat on diesel emissions tests. Volkswagen is the biggest automaker in the world by sales.

"We designed this car well before recent events," Musk said.

Long lines formed for test rides in the factory parking lot after the presentation ended. 

For the company to become profitable, Tesla needs to increase sales by hundreds of thousands of cars per year, according to John Humphrey, a senior vice president at J.D. Power and Associates. 

“These customers are evangelical about the brand,” Humphrey said. “Going downmarket and not losing the allure of the brand is the challenge. Each rung you go down, you lose a little shine on it.”

Tesla stock was up nearly 2 percent in pre-market trading on Wednesday morning. 

This story has been updated to include additional comments from analysts.

A previous version of this article stated that the Model X is Tesla's second car. It's actually the second model currently available, because the company had discontinued the Roadster in 2012.